Three managing directors have left Chicago buyout firm Madison Dearborn Partners as the large-cap firm heads out to raise a ninth flagship fund targeting $3 billion, Private Equity Career News has learned.
Leaving the firm in the last few months were Drew Macha, Jay Pauley and William Ritchie. Former basic industries team member Macha joined Madison Dearborn in 2014 after earning an MBA at Harvard Business School. He has recently served on the boards of Air Control Concepts, Align Precision and Ankura Consulting, according to his Linkedin profile.
Pauley, who joined the firm after working as a managing director at Boston-based growth equity firm Summit Partners, has been part of the technology and government team at Madison Dearborn.
Healthcare team member Ritchie joined the firm in 2014 after earlier working as an investment banking analyst in the consumer, retail and healthcare group at J.P. Morgan. Ritchie has recently served on the boards of software company InMoment, and home healthcare companies Patriot Home Care and Sevita.
A source close to the firm said Madison Dearborn had no immediate plans to do any hiring at the senior level.
War chest: The departures come as Madison Dearborn begins talking to investors about raising a ninth flagship buyout fund, according to a report in Bloomberg. At its target, Fund IX would be significantly smaller than its predecessor fund. The firm’s eighth flagship fund closed in mid-2021 at its $5 billion hard cap.
Earlier Departures: Just about a year ago, Private Equity Career News reported on the departures from Madison Dearborn of two managing directors and co-heads of the telecom, media and technology services team. In a prepared statement, the firm said at the time it had dropped its focus on TMT to concentrate on four industry sectors—basic industries, financial services, healthcare and technology & government.
The Firm: Madison Dearborn has raised more than $31 billion since its founding in 1992 and invested in more than 160 companies. On its team page the firm lists some 93 employees altogether, including about nine partner/managing partners and nine managing directors. The managing director title at Madison Dearborn is one step below partner. We were unable to reach Macha, Pauley or Ritchie for comment. Partners at the firm declined to comment for this article.